Mergers Offset Pfizer Woes

Away from equities, energy prices eased. January oil futures were down 99 cents to finish at $62.44 a barrel, and natural gas dropped 61 cents to $7.81 per million British thermal units. Gold edged higher by 30 cents to close at $650.90 an ounce, and silver tacked on 5 cents at $14.24 an ounce.

Treasuries ticked higher, with the benchmark 10-year up 2/32 in price to yield 4.42%. The 30-year bond was up 3/32 in price, yielding 4.54%. The dollar was gaining against the world's major currencies.

"The rallies have been based on falling 10-year yields pushing [rate-sensitive] stocks higher, and a weak dollar buoying multinational companies," said Pado. "The rally has been based on easing inflation fears and a soft landing."

Overnight in Asia, Japan's Nikkei lost 0.1% to 16,303, and Hong Kong's Hang Seng tacked on 0.1% to 18,703. In Europe, London's FTSE 100 rose 0.5% to 6050, while Germany's Xetra DAX added 0.9% to 6295.